Making and selling crafts on Universal Credit.

Willow291

Hi.. I am new here and just after some advice. I havent worked for a number of years due to mental and physical health problems along with insomnia. I was advised by a psychiatrist to take up a hobby to help with my mental health problems and I do enjoy crafting but it can be expensive. I used to sell some makes on facebook to cover the cost of materials and somebody reported me as working which was completely false, I had proof that I wasnt making any profit and no further action was taken. It terrified me and made me ill so I stopped crafting. I received a migration to universal credit notice for beginning December which I completed. However, would I be allowed to craft and sell crafts to cover costs or would that affect my universal credit? I rarely go out of the house and my mind never shuts off which leads to panic attacks etc. Crafting helps to occupy my mind a little but I dont know how it works. Do I have to inform them of outgoings/incomings, will they say you are fit for work if you are crafting at home etc. Im sorry for the long waffle and lots of questions. Any advice would be greatly appreciated. Thank you.

poppy123456

You would be treated as self employed and you must report a change of circumstances and tell them you're working. You will need to have an appointment with a work coach which will be to talk about your self employed work.

As self employed you will need to report your earnings and expenses on the last day of each assessment period. See link. https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/universal-credit-and-self-employment-quick-guide

You mention only claiming UC recently. Have you reported your health condition and provided a fit note?

If you don't yet have the work allowance any earnings you receive each month will reduce your UC by 55%. If you have the work allowance then it means you can receive a certain amount of earnings each month before the 55% deductions apply. If you claim for help with the rent it will be £379/month, if you don't it will be £631/month. See link for information about the work allowance. https://www.entitledto.co.uk/help/work-allowance-universal-credit

Willow291

Thank you for your reply. I havent had to provide a fit note as I was migrated over from ESA. I was told that now I am on Universal Credit I will need to go for another assessment in the future regarding my health conditions.

It probably isnt worth the hassle then as I wouldnt be selling at a large scale or making money, it was just to cover money I spend really on crafting supplies.

poppy123456

As you were claiming ESA, if you were in the Support Group then you'll be entitled to the LCWRA element from the start of your claim. The majority of people need to be reassessed at some point but for now, this won't happy yet.

The work allowance will also apply to you so if you claim for help with the rent it will be £379/month, if you don't it will be £631/month. It means you can receive that amount of earnings each month before you'll see any deductions.

You will still need an appointment with the work coach if you decide to go ahead and do some work as self employed. You will still need to report your earnings and expenses each month but the Minimum Income Floor will not apply in your case anyway.

As you'll be working from home i can't see how that would affect any future decision for a work capability assessment. As you also have the work allowance, i don't see anything wrong with doing some work, even if it's just a small amount and you don't make any profit but it would be nice to make some profit from what you do.

Willow291

Thank you very much. Appreciate your help.